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India–UK Strategic Ties Strengthen with New Free Trade Agreement

India–UK Strategic Ties Strengthen with New Free Trade Agreement
  • PublishedJune 8, 2025

In a significant diplomatic engagement, United Kingdom Foreign Secretary David Lammy called on Indian Prime Minister Narendra Modi in New Delhi. The meeting comes at a pivotal time when both nations are celebrating a new milestone in their growing bilateral partnership, most notably, the successful conclusion of the India–UK Free Trade Agreement (FTA) and the Double Taxation Avoidance Convention.

According to an official statement released by the Ministry of External Affairs (MEA), Prime Minister Modi expressed satisfaction over the successful finalisation of the India–UK FTA. He appreciated the constructive approach from both sides that contributed to the completion of this crucial economic agreement, which aims to facilitate trade and investment between the two countries.

India–UK Free Trade Agreement and Its Strategic Significance

The India–UK Free Trade Agreement is widely seen as a landmark achievement in bilateral economic relations. Prime Minister Modi welcomed this agreement as a stepping stone towards deeper commercial collaboration. He noted that the FTA and the Double Contribution Convention represent the culmination of months of constructive engagement, dialogue, and mutual understanding.

This development is expected to open new trade channels, enhance business opportunities, and reduce trade barriers between two of the world’s largest economies. The strategic significance of the FTA lies not only in its economic benefits but also in how it reinforces the long-term vision of a closer, more integrated partnership between India and the United Kingdom.

Deepening the India–UK Comprehensive Strategic Partnership

Prime Minister Modi expressed satisfaction at the growing momentum in the India–UK Comprehensive Strategic Partnership. He reaffirmed India’s commitment to further strengthen this multi-dimensional collaboration, covering economic, strategic, and technological sectors.

The leaders welcomed the continued collaboration under the Technology Security Initiative, a critical component in advancing secure innovation ecosystems. Modi acknowledged the initiative’s potential to promote trusted cooperation in areas such as emerging technologies, cybersecurity, and high-technology manufacturing.

Technology, Security, and Innovation Cooperation

One of the key highlights of the meeting was the emphasis on the Technology Security Initiative. Both nations have recognised the value of creating safe and transparent frameworks for technological innovation. The initiative aims to foster trusted technology cooperation by promoting secure ecosystems, enhancing research and development, and aligning shared values on data governance and innovation.

Prime Minister Modi noted the long-term importance of this initiative, particularly in shaping secure innovation frameworks that will guide bilateral cooperation in digital technology, artificial intelligence, and clean tech.

Expanding Cooperation in Key Sectors

Foreign Secretary David Lammy reaffirmed the United Kingdom’s strong interest in enhancing cooperation with India across several vital sectors. These include trade and investment, defence and security, technology, innovation, and clean energy.

Lammy expressed confidence that the newly concluded FTA would unlock numerous economic opportunities for both nations. The agreement is expected to serve as a platform to catalyse future trade flows, encourage foreign direct investment, and support economic diversification on both sides.

The two leaders acknowledged the role of the private sector in accelerating this cooperation and encouraged business communities from both countries to leverage the new trade environment created by the FTA.

Joint Commitment to Global and Regional Security

Prime Minister Modi and Foreign Secretary Lammy also exchanged views on key regional and global developments. In the context of recent security concerns, Lammy strongly condemned the terror attack in Pahalgam and offered the UK’s full support to India in combating cross-border terrorism.

The leaders discussed the growing importance of international cooperation in fighting terrorism and protecting global peace. Prime Minister Modi stressed the need for decisive international action against terrorism and those who support or enable such acts. The discussion reflected a shared concern about maintaining regional stability and the role that global alliances play in tackling terrorism collectively.

Diplomatic Courtesy and Future Engagements

The meeting concluded with a diplomatic gesture from Prime Minister Modi, who conveyed warm greetings to the newly appointed UK Prime Minister Sir Keir Starmer. Modi also reiterated his invitation to the British Prime Minister to visit India at the earliest mutually convenient opportunity.

This exchange signifies a continued willingness on both sides to maintain high-level dialogue and strengthen political goodwill, which serves as the foundation for all bilateral efforts.

Modi Shares Meeting Insights on Social Media

Following the meeting, Prime Minister Modi shared his reflections in a post on social media platform X (formerly Twitter). He acknowledged Foreign Secretary Lammy’s meaningful contribution to the progress of the Comprehensive Strategic Partnership between India and the UK.

Modi noted that the recently concluded FTA represents a major step forward and appreciated the UK’s consistent support in India’s efforts to combat terrorism. His message on X further highlighted the mutual respect and alignment between both nations in addressing shared priorities.

The Broader Picture of India–UK Relations

The India–UK relationship has evolved steadily over recent years, particularly following the UK’s departure from the European Union. Post-Brexit, the UK has identified India as a critical trade partner and a strategic ally in maintaining regional stability.

Both nations share democratic values, strong economic complementarities, and common goals in climate action, health care, education, and people-to-people links. The new trade agreement, along with deepening defence cooperation and increasing digital engagement, forms the basis of a future-oriented relationship.

The meeting between PM Modi and David Lammy builds on these foundational elements, bringing new energy into a partnership already defined by shared vision and mutual aspirations.

The Importance of Balanced Diplomacy in a Multipolar World

In today’s complex global landscape, strategic diplomacy has become more critical than ever. The India–UK partnership is not based on political alignment but on mutual respect and shared interests in trade, security, technology, and sustainability.

This neutral and pragmatic approach ensures that both countries can pursue cooperative initiatives without compromising their sovereign values or aligning themselves to any ideological bloc. The FTA and technology collaboration are practical examples of diplomacy rooted in mutual benefit rather than political narratives.

Looking Ahead: A Future Driven by Mutual Growth

The conclusion of the India–UK FTA and the meeting between Prime Minister Modi and Foreign Secretary Lammy are significant developments in the broader journey of bilateral ties. These milestones reflect the countries’ readiness to collaborate in solving global challenges while advancing national interests.

As the world continues to undergo economic and geopolitical transformations, partnerships like that of India and the UK offer a blueprint for resilient cooperation. Their mutual focus on innovation, strategic autonomy, and international security sets a positive precedent for others in the international community.

Written By
Vaishali Mundra

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